Mineral Resources

Mineral Resources

Buchans Resources Limited’s deposits contain the following mineral resource estimates as prepared by qualified independent consultants.  Tonnages have been rounded to the nearest 10,000 tonnes unless otherwise indicated.  The reported mineral resources are estimated in accordance with CIM guidelines for Classifications of Mineral Resources and Mineral Reserves.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Buchans, Newfoundland

Lundberg Deposit 

NSR
($US)
Cut-off
Category Rounded
Tonnes
Zinc
(Zn)%
Lead
(Pb)%
  Copper
(Cu)%
Silver
(Ag)g/t
Gold
(Au)g/t
 15 Indicated   23,440,000  1.41 0.60 0.35 5.31 0.07
 15 Inferred 4,310,000    1.29 0.54 0.27 4.47 0.08

Note: The effective date of the mineral resource estimate is February 22, 2013.  Resource Estimate reported from: Technical Report prepared by Michael Cullen, P. Geo. & Andrew Hilchey, P.Geo., of Mercator Geological Services Limited. * “break-even cut off” based on operating & processing costs estimated by Tetra Tech (2011 PEA). Feb 2013 – 3yr trailing average metal prices: $0.95 /lb Zn, $1.00 /lb Pb, $3.68 /lb Cu, $29.00 /oz Ag, $1,493.65 /oz Au. 

Daniels Pond Deposit

Cut-off (Zn %)

Category

Tonnes

Combined Zn%+Pb%+Cu%

Zinc
(Zn) %

Lead
(Pb) %

Copper
(Cu) %

Silver
(Ag) g/t

Gold
(Au) g/t

1.5

Indicated

1,162,000

6.88

4.44

2.12

0.31

87.79

0.60

 2.0

929,000

7.98

5.13

2.50

0.34

101.40

0.63

2.5 

787,000

8.79

5.65

2.77

0.37

111.03

0.68

Inferred

445,000

5.89

3.88

1.74

0.27

81.63

0.52

2.0 

7.04

4.61

2.13

0.30

85.86

0.53

2.5 

8.70

5.59

2.79

0.32

112.31

0.55

Note: Daniels Pond Mineral Resource Estimate by Zn% Cut-off Effective March 11, 2008.

Bobbys Pond Deposit

Category

Tonnes

Zinc
(Zn) %

Lead
(Pb) %

Copper
(Cu) %

Silver
(Ag) g/t

Gold
(Au) g/t

Indicated

1,100,000

4.61

0.44

0.86

16.6

0.20

Inferred

1,180,000

3.75

0.27

0.95

10.95

0.06

Note: The resource estimate was prepared by Scott Wilson Roscoe Postle Associates on July 31, 2008 for Mountain Lake Resources, who subsequently sold the property to Minco in 2013. Mineral Resources are estimated at a cut-off grade of 1.1% CuEq, with Zn grade converted to Cu at 2.8:1 ratio, Pb grade converted to Cu at 4.35:1 ratio, an average copper price of US$2.50 per lb, an average zinc price of US$0.90 per lb, an average lead price of US$0.75 per lb, and a minimum horizontal width of 2.0 m of mineralization.

Tulks Hill Deposit

Mineral Resources Above the Adit

Zone

Category

Tonnes

Copper
(Cu)%

Zinc
(Zn)%

Lead
(Pb)%

Silver
(Ag) g/t

Gold (Au)g/t

2

Indicated

290,000

0.91

5.03

2.00

38.81

1.24

3

Indicated

30,000

0.52

2.67

1.53

61.52

0.59

Total

Indicated

320,000

0.87

4.81

1.96

40.94

1.18

Mineral Resources Below the Adit and Elsewhere

Zone

Category

Tonnes

Copper
(Cu)%

Zinc
(Zn)%

Lead
(Pb)%

Silver
(Ag) g/t

Gold (Au)g/t

1

Indicated

4,000

0.79

1.09

0.41

26.19

0.31

2

Indicated

44,000

0.76

1.77

0.56

19.53

2.76

3

Indicated

5,000

0.52

2.46

1.39

57.95

0.66

4

Indicated

58,000

1.12

1.42

0.60

15.09

0.06

Total

Indicated

111,000

0.94

1.55

0.60

18.24

1.15

Note: Scott Wilson RPA Mineral Resource Estimate of the T3 Lens, June 2008 Tulks Hill Deposit.

New Brunswick, Canada

Woodstock Manganese

Mn % Cut-off

Category

Rounded Tonnes

Mn %

Fe %

3

Inferred

44,790,000

9.84

14.15

*3.5

Inferred

44,770,000

9.85

14.15

4

Inferred

44,620,000

9.87

14.17

4.5

Inferred

44,390,000

9.90

14.20

5

Inferred

43,710,000

9.98

14.29

6

Inferred

41,610,000

10.20

14.55

7

Inferred

38,260,000

10.52

14.91

8

Inferred

33,800,000

10.92

15.36

9

Inferred

28,830,000

11.34

15.83

10

Inferred

22,460,000

11.86

16.42

11

Inferred

15,330,000

12.49

17.12

12

Inferred

9,100,000

13.19

17.93

Scott Wilson RPA report dated June 2008 entitled: Technical Report on the Tulks Hill Cu-Zn Project. Mineral Resource Estimate of the T3 Lens, Tulks Hill Deposit. Mineral Resources are estimated at a minimum lens horizontal width of 2.0 m and at a cut-off grade of equivalent 1.1% Cu (1% Cu = 2.3% Zn). Density of mineralized rock is 4.38 t/m3. Indicated Mineral Resources include those mineralized blocks defined by diamond drill holes spaced 50 m or less.

Mexico Properties

(through 26% ownership in Xtierra Inc.)

Bilboa Project

Category Rounded
Tonnes
Zinc
(Zn)%
Lead
(Pb)%
  Copper
(Cu)%
Silver
(Ag)g/t
Indicated 6,125,000 2.31 1.81 0.19 65
Inferred 4,510,000  1.39 1.78 0.15 47

Note:  Runge Pincock Minarco (“RPM”) estimated mineral resource figures published by RPM Preliminary Economic Assessment Report dated April 28, 2014.  Mineral resource estimates were calculated using a 3% AnEq cut-off, using US$0.935 lb/Zn, US$1.008 lb/Pb, and US$30.235oz/Ag.  The zinc equivalent was calculated using the following metallurgical recoveries 76.7% Zn, 90.6% Pb and 73.4% Ag. 

 

Laguna Project

Mineral
Reserves
Rounded
Tonnes
Silver
(Ag)g/t
Gold
(Au)g/t
Mercury
(Hg)g/t
Proven 529,000  55.12 0.29 351.04
Probable 6,270,000 58.16 0.31 327.06
Total P+P 6,799,000  57.92 0.31 328.92

Source Micon report dated February, 2008 entitled: Technical Report for the Mineral Resource and Mineral Reserve Estimates, Pedernalillo Tailings Project, Zacatecas State, Mexico.